NRAM mortgage -heliodor/topaz

Brock_and_Roll

LRW66 wrote: »

My mortgage was also transferred to them last month.. at first thought it might be a good thing and I might escape NRAMs high rates , unfortunately not back to square one still a mortgage prisoner..
I’ve read through so much on the subject in the last two days , I’ve approached a company (legal) saying it might be possible to put in a complaint about being trapped in a high interest mortgage and not being able to change , I’ve also contacted the ombudsman who advised to try doing this myself , so today I filled in NRam complaint form and requested all my details of accounts for last 15 years,
I also found articles about mortgage prisoner action group who have instructed a London based law firm to look into this...
I have spoken to the FCA and asked that when the measures for mortgage prisoners to be allowed a less stringent form of remortgage application was going to be coming into fruition, and been trying to find out what lenders have made accommodations for there ruling ... so far I can only see Ipswich building society advertising it ... they don’t lend in Scotland so that’s no good for me but maybe worth a call if you’re in the same boat!
I’m going to wait for response from NRam and if it not what I expect will take advice from the ombudsman and Chase the issue through them!
because I was on a intrest only mortgage , before NRam went under, and the fact due to a breakup in relationship and then NRam not offering any other rate or mortgages I was left as what’s described a mortgage prisoner.. as the more stringent expenditure checks won’t let me swap mortgage,this I find is wrong as what I pay in intrest only is the same as a lower rate repayment mortgage & I currently have 67k equity in property, up to date with payments and nowhere to turn as yet ! Any advice or help greatly appreciated

Surely if you have £67k of equity then you are not a mortgage prisoner...not even on day release!

You could simply "escape" the mortgage by selling the house.

LRW66

And this would achieve what? The fact that NRAM didn’t let you renew your mortgage terms that I would of been able to before northern rock went under put me in a position at that point whereas the equity wasn’t there at that point so decided to ride out the storm and live in hope that someone might actually see what they did was just wrong, thankfully the growing number of complaints and the highlighted fact that the FCA. Have taken steps to address the problem is a good start for me ... I’m still going to see if I can claim back what I’ve basically overpaid by means of roughly 2% since 2008 when they locked down the mortgage to a rate I couldn’t escape from , it’s hardly my fault they went under!

Thrugelmir

LRW66 wrote: »

it’s hardly my fault they went under!

Likewise your personal circumstances have changed since you originally applied for the mortgage. This obviously has a material bearing on your ability to remortgage. Many people find themselves in similar positions. They are not mortgage prisoners.

LRW66

So what is a mortgage prisoner? I’m unable to change my mortgage as I’m net meeting the lending criteria... the initial mortgage was based on two salaries now it’s just mine, I’m a carpenter working for myself (ltd) below vat threshold, I have a goodish credit score a couple of loans and credit cards and when I fill out affordability the figures are below what I need to remortgage... even though the rate I’m on now I afford to pay!!! I thought by reading through various articles that pretty much describes mortgage prisoner. That and the fact that NRAM were not active lenders and could not adjust or offer new mortgage solution?

Ps sorry about spelling , grammar , punctuation , will fit you a citchen , build you a house but all this is not my sting point I have joined here to try and find best way forward and ask if anyone knows if the FCAs decision to help mortgage prisoners has actually been started or helped anyone if so what companies are partaking ?

csgohan4

LRW66 wrote: »

So what is a mortgage prisoner? I’m unable to change my mortgage as I’m net meeting the lending criteria... the initial mortgage was based on two salaries now it’s just mine, I’m a carpenter working for myself (ltd) below vat threshold, I have a goodish credit score a couple of loans and credit cards and when I fill out affordability the figures are below what I need to remortgage... even though the rate I’m on now I afford to pay!!! I thought by reading through various articles that pretty much describes mortgage prisoner. That and the fact that NRAM were not active lenders and could not adjust or offer new mortgage solution?

Ps sorry about spelling , grammar , punctuation , will fit you a citchen , build you a house but all this is not my sting point I have joined here to try and find best way forward and ask if anyone knows if the FCAs decision to help mortgage prisoners has actually been started or helped anyone if so what companies are partaking ?

Whether you are NRAM or not, all re mortgage decisions are based on stricter criteria and on affordability. The fact you only have 1 income than 2 is not the lenders fault is it?

Lenders have a set criteria, you don't meet it, what else do you want to do? There's a reason why they have stricter rules now due to previous economic consequences.

While it would be better for you to be on a lower rate which you can afford, lenders have to follow the set criteria, no ifs, ands or buts.

By all means you can make a complaint and see where it goes, please post the outcome.

Here's the article by MSE which I am sure you have read:
https://www.moneysavingexpert.com/news/2019/10/barriers-removed-for-mortgage-prisoners/

Thrugelmir

LRW66 wrote: »

So what is a mortgage prisoner?
[\QUOTE]

Good question. Needs a clear definition. Probably only be resolved by a Government backed fund. Which would require the whole mortgage market to be regulated even tighter. Interest rates wouldn’t be the lowest either.

If your mortgage is interest only then you need to think ahead. As to how you will repay the capital balance at the end of the mortgage term. If at all possible start making overpayments to reduce the balance owed. This is turn will reduce the amount of interest you are paying.

I’m personally useless at DIY. :rotfl:

No need to worry about spelling or grammar either.:cool:

LRW66

I think it’s the fact that if Northern Rock hadn’t gone under, and were still able to lend - remortgage ,then there rates too would have dropped ... this meaning that as I’d of been with the original lender then obviously being up to date on repayments I would have been able to change a lot easier ... as was what was discussed at the point of commencing with Mortgage , like I said previously my intrest only repayments that are up to date a on a level footing with low rate repayment deals, so I’m kind of proving I can afford it? The FCA from what I can gather are helping people who are with active lenders by means of a more relaxed affordability check . A lawyer on behalf of a mortgage prisoner group has now been instructed to look int Heliodor sale... just registered with them too.
:eek:

Thrugelmir

Northern Rock failed on a number of counts. Life is full of only ifs.

LRW66

Agree totally, but shoould they be held accountable? They sold a product and didn’t see the terms of it through! There FCA backed and regulated ,should it of happened at all , surly someone is accountable?

SpiderLegs

LRW66 wrote: »

Agree totally, but shoould they be held accountable? They sold a product and didn’t see the terms of it through! There FCA backed and regulated ,should it of happened at all , surly someone is accountable?

What terms have they not seen through?

I thought your issue was about not being able to buy a new product rather than complaining about the existing one?